The Central Bank of Nigeria (CBN) has tasked banks operating in the country to develop new business models and tinker with existing ones so as to enable them manage the disruptions caused by the Covid-19 crisis.
Deputy Governor, Financial System Stability, CBN, Mrs. Aishah Ahmad said banks and other financial institutions can only survive disruptive events if they fully embrace sustainability principles.
Ahmad who spoke over the weekend while delivering her remarks at a Webinar, organised by the Chartered Institute of Bankers of Nigeria (CIBN), noted that this had become even more critical during periods of significant disruptions such as the current coronavirus pandemic (COVID-19) ravaging the world.
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According to her, though primarily a health crisis, the negative spillover effects on business and the economy are complex and pervasive, considerably slowing economic activities in most countries.
Prior to the disruption caused by COVID-19 pandemic, the CBN Deputy Governor noted that financial services have been undergoing significant evolution. She added that Banks have had to modify their business models to address changes caused by innovation, digitalization, new entrants by Fintechs, increasing regulation and changing needs and behavioural patterns of customers.
“These developments have triggered very aggressive changes in the financial services industry, introducing significant dynamism into the industry’s value chain – changing mode the production, delivery and consumption of financial products and services”, she said.
